Shawn Johnson, who trained at Chow's Gym in West Des Moines under owner Liang Chow, won the gold medal in the balance beam at the 2008 Beijing Olympics. Her score of 16.225 topped the competition, including USA teammate Nastia Liukin, who finished with the silver medal with a score of 16.025. PAT BENIC/UPI Photo

Shawn Johnson of West Des Moines puts her hand over her heart while the national anthem plays after she was awarded the gold medal in the balance beam at the 2008 Beijing Olympics. USA TODAY Sports file photo

Shawn Johnson during her gold medal winning balance beam routine at the 2008 Beijing Oympics. She also won two golds at the 2008 U.S. Championships – all around and floor exercise. And she won three golds at the 2007 U.S. Championships – all around, balance beam and floor exercise. USA TODAY Sports file photo

Sen. Roby Smith, R-Davenport, the bill's floor manager, urged support for the legislation. He said any tax savings won't begin to cover the costs of training and other sacrifices Iowa athletes have made in preparation for Olympic participation.

"This is our chance to eliminate the victory tax," Smith said.

Olympians receive $37,500 for gold medals, $22,500 for silver medals, and $15,000 for bronze medals. The legislation would also apply to Paralympics Games' winners. They receive $5,000 for gold medals, $3,000 for silver medals and $2,000 for bronze medals.

The federal government already provides an exemption from income taxes resulting from medals and prize money.

Sen. Herman Quirmbach, D-Ames, unsuccessfully offered an amendment to expand the tax exemption to cover Iowans who win the Nobel Prize, Pulitzer Prize and World Food Prize. Smith opposed the amendment, saying the bill was narrowly drafted and that Iowans can win lots of other significant prizes as well, such as the Pillsbury Bake-Off.

The tax break would not be available to married couples with net income of $1 million or more, or to single persons with net income of $500,000 or more.